Netflix Is Powering Higher Again

Shares of the video streaming service have powered 8% higher over the last five sessions, out-performing the Nasdaq Composite 1.5% gain. Netflix has easily been the hottest FANG stock during this mini five-day rally:

Netflix's stock tanked 24% from early July to Aug. 17 on fears of overvaluation. Driving those fears no doubt was a mixed second quarter.

The company said both its U.S. and international subscriber growth came in much lower than both it an analysts expected in what it called a "strong, but not stellar second quarter." Netflix added just 670,000 new subscribers in the United States, around half of the 1.19 million analysts were looking for over the period.

Given the stock's move, it seems investors are positioning for a strong third quarter.